Their last acquisition, Haldon (to be finalized during Q4 21) looks even more interesting than the 2 previous ones : Highland Fluid and Prosol. Highland Fluid was interesting as it enabled them to get some scale in the oil and gas sector, but it was significantly loss making (according the pro-forma figures given by Scidev). Prosol was interesting for its leading position in the Hunter Valley coal industry, but it was a smaller company.
Haldon's acquisition has several interesting elements at the same time for them : - it looks a good fit in terms of business mix, as its main businesses are in infrastructure and water/waste waters, which were 2 weak areas for Scidev (most of the sales were in mining and oil/gas sectors), - Haldon has already high margins (gross margin of 67 % and EBITDA margin of 38.2 %), while it is enjoying high top line growth (+ 40 % in FY 19 and + 64 % in FY 20, due to gain of new contracts with an expanded customer basis), - the price paid by Scidev looks quite low : at completion, they will just pay 6 m or 2x last year EBITDA (the maximum price is 16.9 m or 5.4 last year EBITDA and 3.1 x EBITDA 23 target to get year 3 payout).
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